The rise of the ultrarich and what it means for America

Summary

In this interview, author Evan Osnos discusses the rising influence of American billionaires, noting that their wealth has become more concentrated than during the Gilded Age. While acknowledging that the nation's economy has thrived, he highlights the growing inequality and the consequences it brings, such as the inability of many to handle emergencies. He contrasts this with the philanthropic efforts of figures like Rockefeller and Carnegie and discusses the unsettling trend of ultra-wealthy individuals preparing for societal collapse. Osnos stresses the need for balance, with a focus on protecting vulnerable communities to mitigate social unrest.

Takeaways

• 😀 The number of American billionaires has increased dramatically from 66 in 1990 to over 800 today, indicating a growing wealth concentration.
• 😀 Despite the increasing wealth of the country, half of American adults cannot afford a $1,000 emergency, highlighting the wealth inequality problem.
• 😀 America's richest people today control a larger share of national wealth than historical figures like the Vanderbilts, Carnegies, and Rockefellers did during the Gilded Age.
• 😀 While wealth can theoretically lift all boats, recent history shows that income inequality in the U.S. is at some of the highest levels ever recorded.
• 😀 The U.S. is not alone in experiencing these high levels of inequality—globally, wealth concentration is growing.
• 😀 American attitudes towards wealth are ambivalent, as many aspire to be billionaires but also believe they are contributing to a less fair society.
• 😀 The U.S. economy requires people who innovate, take big risks, and prosper, but this also necessitates responsibility, like the philanthropic efforts of historical figures such as Rockefeller and Carnegie.
• 😀 Some ultra-wealthy individuals, including Silicon Valley CEOs, have resorted to creating survivalist compounds and preparing for worst-case scenarios, indicating their growing sense of social fragility.
• 😀 Despite their immense wealth, the ultra-rich feel vulnerable and exposed, influenced by social media platforms that highlight widespread economic struggles.
• 😀 The contrast between the wealth of billionaires and the poverty of certain societal sectors is stark, as illustrated by the fact that 25 hedge fund managers make more than all kindergarten teachers in the U.S. combined.

Q & A

Why has the number of American billionaires skyrocketed?

The increase in the number of American billionaires is largely attributed to the overall growth in wealth in the country, driven by market dynamics, innovation, and investment opportunities.

What is the issue with the increasing concentration of wealth in the hands of a few people?

The problem with the growing concentration of wealth is that it has led to rising inequality, with many Americans struggling financially despite the country becoming wealthier overall.

How does the wealth of America's richest compare to historical figures like the Vanderbilts and the Rockefellers?

America's richest people today hold a larger share of the nation's wealth than historical figures like the Vanderbilts, Carnegies, and Rockefellers, making the current inequality even more pronounced than during the Gilded Age.

What role does the ultra-wealthy play in the economy?

The ultra-wealthy often drive innovation, create jobs through investments, and fuel the economy by making large financial commitments. However, their growing wealth can also create imbalances that impact social and economic fairness.

What does the book 'The Halves and the Have Yachts' aim to do?

The book 'The Halves and the Have Yachts' aims to shed light on the growing inequality by putting concrete numbers on abstract issues like wealth concentration, helping readers understand the societal implications before it’s too late.

Why do some Americans aspire to become billionaires despite concerns about inequality?

Many Americans are both cynical and aspirational about big money. While a large percentage believe billionaires contribute to inequality, they also hold onto the belief that anyone can achieve such wealth in America.

How does the historical example of John D. Rockefeller and Andrew Carnegie relate to modern billionaires?

John D. Rockefeller and Andrew Carnegie used their fortunes to invest in societal goods, like the University of Chicago and libraries. The modern lesson is that billionaires can contribute positively through philanthropy, but not all do so.

What are survivalist compounds, and why are some ultra-rich individuals investing in them?

Survivalist compounds are private, often remote locations prepared for potential societal collapse. Some ultra-rich individuals invest in them due to their growing sense of vulnerability and fear of societal instability.

How does the feeling of vulnerability affect the behavior of some ultra-wealthy people?

When ultra-wealthy people feel socially and economically disconnected, they may seek extreme security measures, such as personal bunkers or escape plans, to prepare for potential social unrest or disaster.

What is the significance of the statistic about hedge fund managers and kindergarten teachers?

The statistic that 25 hedge fund managers make more money than all kindergarten teachers combined highlights the extreme income inequality that exists, raising concerns about the fairness and sustainability of such disparities in wealth.